Medicaid will cover the cost of some types of long-term care, but to qualify one must meet Medicaid's strict income and asset eligibility requirements. Medicaid was designed as a resource for individuals who could not otherwise pay for their own medical needs. It was not designed to act as a national long-term care financing tool. Medicaid describes itself as a "jointly funded Federal, State health insurance program for certain low-income and needy people. It (Medicaid) covers approximately 36 million individuals, including children, the aged, blind and/or disabled, and people who are eligible to receive federally assisted income maintenance payments."¹

Some people have considered simply reducing their assets in order to meet Medicaid's eligibility requirements. However, once a person has depleted their assets, they have also lost control over where and when they receive care. In addition, because of state and federal budget cutbacks, the facilities close to family and friends might not have openings for Medicaid patients at the time care is needed.

New York Life Insurance Company

¹ Centers for Medicare and Medicaid Services Web Site. http://cms.hhs.gov/medicaid/. 8/27/02

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